Check my work Flight Café prepares in-flight meals for airlines in its kitchen l
ID: 2564749 • Letter: C
Question
Check my work Flight Café prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below Flight Café Planning Budget For the Month Ended July 31 23,000 $101,200 46, 000 10,900 Budgeted meals (g) Revenue ($4.40q) Expenses: Raw materials ($2.00g) Wages and salaries ($6, 300 $0.20q) Utilities ($2,000 $0.05q) Facility rent ($3,500) Insurance ($3,000) Miscellaneous ($500+$0.10g) 3,150 3,500 3,000 2,800 69, 350 31,850 Total expense Net operating income In July, 24,000 actually meals were served. The company's flexible budget for this level of activity appears below: 6:22 PM 11/6/2017Explanation / Answer
(a)
(b)
(c)
(d) = (c) - (b)
Planning Budget
Flexible Budget
Activity Variance
Revenue
101200
105600
4400
Favourable
Expenses:
Raw Materials
46000
48000
2000
UnFavourable
Wages and Salaries
10900
11100
200
UnFavourable
Utilities
3150
3200
50
UnFavourable
Facility Rent
3500
3500
0
None
Insurance
3000
3000
0
None
Miscellaneous
2800
2900
100
UnFavourable
Total Expense
69350
71700
2350
UnFavourable
Net Operating Income
31850
33900
2050
Favourable
(a)
(b)
(c)
(d) = (c) - (b)
Planning Budget
Flexible Budget
Activity Variance
Revenue
101200
105600
4400
Favourable
Expenses:
Raw Materials
46000
48000
2000
UnFavourable
Wages and Salaries
10900
11100
200
UnFavourable
Utilities
3150
3200
50
UnFavourable
Facility Rent
3500
3500
0
None
Insurance
3000
3000
0
None
Miscellaneous
2800
2900
100
UnFavourable
Total Expense
69350
71700
2350
UnFavourable
Net Operating Income
31850
33900
2050
Favourable